OXFAM ANNUAL REPORT & ACCOUNTS 2011/12

15.0 million*people reached in 55 countries

1.6 millionpeople globally took online campaign action

6.5 million*people supported in 27 humanitarian crises

1,296 grants to 873 partner organisations worldwide

425,348 people in the UK made a regular donation

ContentsMessage from the Chair 2 Corporate directory 3 Our approach and aims 4 Income and expenditure 5

Sustainable livelihoods 6 Life and security 12 Essential services 17 Being heard 20 Equity 24

Supporting the programme 27 Structure, governance and management 29 Accountability 34Report against corporate objectives 2011/12 36 The year ahead 37 Finance summary 38

Accounts 42

Acknowledgements 68

* In our efforts to maintain our accountability to stakeholders, we continue to include statistical information throughout this report. Given the breadth and depth of our work, we acknowledge the difficulties in measuring this; we have used our own monitoring systems to compile the data, and figures have been rounded as appropriate. We have worked hard to avoid any double counting when identifying the numbers of people we reach, however, there is likely to be some overlap between specific activities, as some individuals will be supported in more than one area of our work.

2 MESSAGE FROM THE CHAIR TRUSTEES’ REPORT

When I was growing up, Oxfam was part of shaping my view of the world. Its clear voice often persuaded me of what really mattered. It still does.

The voice is more varied now, as more and more people come together in a global movement to insist on change. In the last 18 months I have had the immense privilege of learning more about Oxfam from the inside; initially as a Trustee and now as Chair of Oxfam GB1 since October 2011. I would like to take this opportunity to thank my predecessor, John Gaventa, for his dedication, passion and thoughtful leadership. John’s commitment to all of Oxfam’s work, and especially to its listening and its learning, has been an inspiration for so many, and I will continue to look to his example in the coming years.

An increasingly harsh environmentThe world is a much tougher place for poor people than it was five years ago. The interlinked impacts of climate change, food price hikes, flood and drought, land grabs, and the global financial crisis take their toll. People living in poverty are forced to struggle even harder for ever diminishing resources. It is a complicated picture, but there’s nothing complicated about its consequences: more than one billion people will go to bed hungry tonight. This is the context in which we launched GROW in June 2011, a global campaign calling for fundamental changes to the world’s food system – and ultimately for a world in which every person has enough to eat (see page 6). Women grow much of the world’s food,

but lack the land, training and investment they need to do it. Giving women the same access as men to these resources would dramatically reduce world hunger – and strike a blow to the inequality at poverty’s rotten core.

Making our resources go furtherThe harsh external environment has meant that Oxfam has had to get better at what we do, including responding to the increased number of humanitarian disasters. Innovation has been crucial in making resources stretch further: for example, using mobile phone technology to get cash to people early enough to avert the effects of a crisis on them; or developing low-cost, sustainable technology to provide water and sanitation. There is innovation in Oxfam’s work with the private sector too – with our working as a catalyst connecting international companies with small- and medium-sized enterprises in developing countries, to enable those at the ‘bottom’ of the value chain to overcome poverty (see page 10). Oxfam’s advocacy work, with its combination of careful timing and strong partnerships – including working more and more (as ‘one Oxfam’) with the 16 other affiliates that

MESSAGE FROM THE CHAIR

“I was drawn to Oxfam by the fact that it took its accountability to supporters and the people we work with so seriously. It wasn’t surprising to find that we constantly challenge ourselves to do better and to learn from our experiences.”

TRUSTEES’ REPORT MESSAGE FROM THE CHAIR 3

make up Oxfam International – can achieve far-reaching, long-term change with relatively modest resources (see page 28).

AccountabilityI was drawn to Oxfam by the fact that it took its accountability to supporters and the people we work with so seriously. It wasn’t surprising to find that we constantly challenge ourselves to do better and to learn from our experiences – for example, our acknowledgement that we need to do more to bridge the divide between humanitarian and development work, in the wake of the East Africa food crisis (see page 12).

Like others, I have long been inspired by the way in which Oxfam enables people in poverty to take control of their own futures. During a visit to Ethiopia in August 2011, I met a group of women. In the space of just a few years, starting with next to nothing, but with support from Oxfam’s local partner, they had managed to save, invest in equipment and animals, and grow more food. In doing so, the women had increased their power and influence in the community, and had dramatically increased their families’ ability to withstand disaster. They, and other groups like them, demonstrate how development works.

In spite of the recession and increasing concern for some about the value of international development aid, Oxfam is keeping its finances on track. This is thanks to the dedication of our thousands of supporters, and to our partners, staff, volunteers and campaigners, without whom none of the other amazing work would be possible. As Oxfam nears its 70th birthday this October, I would like to thank you all for everything you have helped to achieve so far. It is both a pleasure and a privilege to accompany you on this journey.

Karen BrownChair of Oxfam

1Throughout this report, Oxfam GB is referred to as Oxfam.

CORPORATE DIRECTORY

Oxfam Council of Trustees as at 31 March 2012 and 13 July 2012Karen Brown (Chair)2, 3 Sandra Dawson (Vice-Chair)2 David Pitt-Watson (Honorary Treasurer)1, 2 James Darcy Maja Daruwala Andy Friend2

NB. John Gaventa and Gareth Davies retired from Council at the Annual General Meeting on 14 October 2011. At the Council meeting on 14 October 2011, Karen Brown was appointed as Chair, Sandra Dawson as Vice Chair, David Pitt-Watson as Treasurer, and James Darcy as Vice Chair Designate.

Oxfam Association as at 31 March 2012(Refer to Trustees’ Report: Structure, governance and management: page 29)

The following, who are not Trustees, are members of the Association of Oxfam:

Miqdad Asaria Andy Burgen Namukale Chintu1 Kate Cook Mark Dawson Bob Dewar Janet Harrison Fiona Hodgson Rachel Holmes Rizwana Khan1 Member of Trustee Audit and Finance Group 2 Member of Remuneration Committee 3 Member of Recruitment and Development Group

Principal professional advisersOxfam’s principal professional advisers include the following:

Principal Clearing Bankers The Royal Bank of Scotland Group, 9th Floor, 280 Bishopsgate, London EC2M 4RB

Independent Auditors PricewaterhouseCoopers LLP, 7 More London Riverside, London SE1 2RT

Principal Solicitors Freshfields Bruckhaus Deringer, 65 Fleet Street, London EC4Y 1HSWragge & Co, 55 Colmore Row, Birmingham B3 2AS

Corporate Management TeamOxfam’s Corporate Management Team (CMT) comprises:

Chief Executive Barbara Stocking, DBECampaigns and Policy Phil BloomerCommunications Thomas Schultz-Jagow (until 24 February 2012), Jane Cotton (interim), Chris Gottlieb (from 16 May 2012)Human Resources Jane CottonFundraising Cathy Ferrier (until 7 March 2012), Sioned Jones (interim), Paul Clarke (from 11 June 2012)Finance and Information Systems Robert HumphreysInternational Penny LawrenceTrading David McCullough (until 30 September 2011), Andrew Horton (from 31 October 2011)

Oxfam is a registered charity in England and Wales (202918) and Scotland (SC039042) and a company limited by guarantee registered in England No. 612172 at Oxfam House, John Smith Drive, Cowley, Oxford, OX4 2JY. Oxfam GB is a member of Oxfam International.

Vanessa Godfrey3 Rajiv Joshi1 Matthew Martin3 Marjorie Scardino Nkoyo Toyo Tricia Zipfel1

David Lingard3

Thomas Lingard Helen Marquard3 Isobel McConnan Jabulani Ncube Tunde Olanrewaju Tim Robinson1 Angela Sealey Janine Woodward3 Brian Zheng Zhang

Oxfam works with others to overcome poverty and suffering. To achieve the greatest possible impact, Oxfam works at community, national and global levels. We combine humanitarian assistance, long-term development, and campaigning and advocacy to tackle the root causes of poverty.

Oxfam is an independent organisation, affiliated to Oxfam International, a global confederation of 17 independent Oxfams which share the same purpose and rights-based approach. We are all part of a global movement to build a fairer, safer world.

Charitable objects As stated in the Memorandum of Association,

the objects for which Oxfam is established for the public benefit are:

•Topreventandrelievepovertyandtoprotect vulnerable people, including through humanitarian intervention;

•Toadvancesustainabledevelopment;

•Topromotehumanrights,equalityanddiversity, in particular where to do so contributes to the prevention and relief of poverty; in all cases working anywhere in the world.

Oxfam has five strategic aims that are based on fundamental human rights:

The right to sustainable livelihoods We are working for a world in which every person has enough to eat, a dependable income and the opportunity of secure, paid employment in dignified conditions. We are calling for the funding and support needed to help millions of people living in poverty adapt to climate change.

The right to life and security We provide assistance and protection to people caught up in conflict or natural disasters, and lobby governments and the international community to live up to their responsibilities to protect civilians.

The right to essential services Oxfam’s ability to secure our other aims depends on people being able to access health care, education, clean water and sanitation facilities. We lobby at global level for state investment – supplemented by international aid – in basic social services.

The right to be heard Powerlessness causes poverty and keeps people poor. Oxfam enables people in poverty to engage with decision-makers and to influence the local, national and global decisions that affect their lives.

The right to equity Gender inequality is a major cause of poverty. Oxfam has therefore made a commitment to put the rights of women living in poverty at the heart of everything we do.

OUR APPROACH AND AIMS

4 OXFAM’S APPROACH AND AIMS TRUSTEES’ REPORT

£9.2m DEC appeal income 2% £6.7m Gifts-in-kind 2% £10.3m Sales of purchased goods and other trading income 3% £11.2m DFID Partnership Programme Arrangement 3% £6.1m Other 1%

INCOME AND EXPENDITURE

£102.6m Donations and

legacies 27%

£159.8m Income from government and other public authorities 41%

£79.6m Sales of donated goods 21%

£89.9m£67.6m

£22.3m

£282.8m£259.8m

£23.0m

Trading and fundraising net income

Total income less expenditure

Trading Fundraising

Analysis of charitable activities

Where our funds came from

Sales Income CostsCosts Net income

Net income

£76.0m Right to sustainable livelihoods 26%

£24.6m Right to essential services 9%

£16.7m Right to be heard 6%

£26.5m Right to equity 9%

£26.3m Support costs 9%

£15.5m Campaigning and advocacy 6%

£116.3m Right to life and security 41%

£111.4m Humanitarian 43%

£133.2m Development

51%

TRUSTEES’ REPORT INCOME AND EXPENDITURE 5

Tota

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Trad

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cost

s

Fund

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cost

s

Othe

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sts

Char

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Incr

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£385.5m £67.6m

£23.0m£1.7m £286.4m

£6.8m

Total income

£385.5m

Programme expenditure by aim

£260

.1m

Charitable activities £286.4m

Programme expenditure

£260.1m 91% of charitable

activities

FOOD – A GROWING CRISIS

In a world rich in resources, one in seven of the global population – one billion people – still go to bed hungry every night. The problem is at its most extreme in developing countries such as Guatemala, where over 40% of children under six are malnourished.1

The amount of arable land per head has almost halved over the past 50 years. And it is predicted that international prices of some basic foods are set to more than double by 2030.2

It is sobering figures like these which prompted Oxfam to launch its most ambitious campaign ever – GROW.

The GROW campaign The aim of the GROW campaign over its

projected five-year span is to tackle the current unfair global food system and start a worldwide movement for a world where everyone always has enough to eat.

The campaign tackles four major, interlinked issues to secure a fairer future for the growing global population, particularly for the world’s

poorest communities and for the millions of women who depend on agriculture.

•Food price volatility. When people have to spend 80% of their income on food, any rise in food prices can throw whole families into destitution. GROW seeks to make trade fairer and end speculation on food prices which proves so devastating.

•Land grabs. Rather than allow secretive land deals by wealthy companies or foreign governments that force poor farmers off their land, GROW campaigns to give farming communities the support they need to thrive.

•Climate change. Changing climate means that as temperatures rise, crop yields fall, and extreme weather events which can wipe out harvests are worse and more frequent. GROW campaigns to enable communities to adapt.

•Supporting sustainable farming. Too many of the ways that food is grown use up and destroy natural resources, but investment in small-scale farming in developing countries could hold the key to growing food more fairly and sustainably. GROW looks for changes to the way the world farms that will help productivity soar.

SUSTAINABLE LIVELIHOODSIn 2011/12, the impact of a failing food system on the world’s poorest people was brought sharply into focus. As well as directly supporting communities, Oxfam is working to create long-term changes in policy, practice and thinking at national and global levels.

1 Paho, 20102 ‘Growing a Better Future’ report, Oxfam International 2011.

Launching GROW The launch of GROW in June 2011, was as ambitious as the campaign itself. Over two weeks, across more than 45 countries, thousands of people – from smallholder farmers to celebrities and politicians – helped to kickstart the campaign, taking it to the streets and on to TV screens.

Celebrity chefs using local produce from small-scale farmers featured in several

countries including the Philippines, where an exhibition on women food producers was organised, along with a public meeting with high-ranking politicians.

Food festivals, farmers’ marches, discussions, demonstrations, ‘Table for nine billion’ stunts, food surveys, picnics and high-level political debates were amongst the GROW events that took place worldwide to celebrate food and draw attention to the problems facing us all.

TRUSTEES’ REPORT THE RIGHT TO A SUSTAINABLE LIVELIHOOD 7

In June 2011, thousands of people around the world took part in hundreds of innovative events to draw attention to the broken global food system. In Vancouver, Oxfam volunteer Sonya transformed herself into a human carrot to distribute GROW information to beachgoers. Photo: Oxfam Canada

Mamore river, our local partner FUNDEPCO is also building 200 ‘safe homes’. These houses are built on stilts above flood levels to protect families from any future flooding. Carmen Cortado describes their impact: “When there are floods we have to go to the town and live there. Everything gets destroyed. Now I am thinking my family’s future is here in Sobrenia, as we won’t have to run away from the floods any more.”

Climate change and GROW Tackling climate change remains at the forefront of Oxfam’s fight against poverty, and is a major focus of the GROW campaign.

We continue to target the world’s governments to stop them listening to industrial lobbies and start dealing with a situation that’s only going to get more urgent. And for many poor rural communities worldwide, climate change is having a massive impact on their lives.

In the Beni region of Bolivia, farmers and their families are struggling to deal with changing weather patterns that mean that annual floods get progressively higher and more destructive. As part of our camellones project (introducing a flood- and drought-resistant farming system) in Sobrenia and other communities along the

8 THE RIGHT TO A SUSTAINABLE LIVELIHOOD TRUSTEES’ REPORT

1,000,000Number of people provided with information about disaster preparedness and climate change.

780,000People supported to reduce their risk to existing hazards.

120,000People supported to adapt to emerging climatic trends.

75,000People supported to develop and use new technologies and approaches in response to climatic changes.

HELPING COMMUNITIES TO ADAPT TO CLIMATE CHANGE IN 2011/12

“GROW is so urgent, so timely, and so important. If we can bring about food justice, we can bring about social justice. We need to see crops as food, not as a commodity for profit.” Satish Kumar, peace and environmental activist

“When the waters rise we lose our rice, cassava plants and our banana crops too. It’s very sad to see them growing and then they just fall down and go rotten,” explains Santos Silvacios, a farmer from Sobrenia, Bolivia. “In my new home I will live a better life.” Photo: Peter Tecks

EDP investment enabled a farming association in Ethiopia to buy its own oil processing machine. “Our lives have been eased as a result. And this is just the beginning,” explains Bayush Kassan (left). And with the launch of SEIIF (see page 10), Oxfam, through financial intermediaries, will also be able to support more growing enterprises in the future. Photo: Tom Pietrasik

GROW in the UKIn the past 30 years, the number of people in the UK living below the poverty line has almost doubled to 14 million. It is estimated that every day, 700,000 children arrive at school hungry as families struggle to put food on tables.

During the year, as part of our UK Poverty Programme (UKPP), we continued our work in partnership with the Unilever Foundation, launching a major new three-year food and livelihoods project. The work, which began in early 2012, included providing 10,000 people with emergency food packages. This is delivered through our partners FareShare and the Trussell Trust, whose work concentrates on tackling food poverty. Food banks, community centres, homeless shelters and schools are all involved in this vital activity, distributing food donated by the public, and surplus food from

industry, to projects supporting vulnerable people in local communities across the UK.

ENTERPRISING OXFAM

We continued to encourage poor people to succeed by getting better prices for their productsor by being part of companies’ supply chains.

Oxfam Enterprise Development ProgrammeDuring 2011/12, Oxfam’s Enterprise Development Programme (EDP), which identifies, nurtures and invests in small rural enterprises, produced some positive results. Despite a slowing in fundraising and some businesses taking longer to reach projected viability, 2011/12 saw:

•Thenumberofprojectsfundedrisefrom11to17•A30%riseinthenumberoffarmersinvolved

to 24,000•A40%riseinenterpriserevenues

TRUSTEES’ REPORT THE RIGHT TO A SUSTAINABLE LIVELIHOOD 9

10 THE RIGHT TO A SUSTAINABLE LIVELIHOOD TRUSTEES’ REPORT

which often lack access to finance in order to grow.

Targeting this ‘missing middle’ between micro-finance and larger, institutional finance, SEIIF aims to raise £100m from private finance,companies and investors. The fund is commercially based, offering investors realistic returns, while Oxfam’s input will ensure that it achieves its mission of positive social change.

CO-OPERATIVE ACTION

In line with both our GROW activities and our strengthening of corporate relationships, Oxfam and The Co-operative joined forces to launch a new campaigning partnership calling for increased international investment to help smallholder farmers and co-operatives.

This started with a joint action asking our supporters and Co-op members to petition the UK government to champion international investment in smallholder agriculture at the Rio+20 UN Conference on Sustainable Development in May 2012.

ALBANIA EXIT

Celebrations were in order at the end of March 2012, when we formally transferred our programme in Albania into a national social enterprise at a public ceremony in Tirana.

The Albania programme is a great example of Oxfam’s leverage – our ability to increase the return on a relatively small investment. We have supported agricultural development over 18 years, helping farmers to adopt innovative and

•A50%riseinthenumberofwomenfarmers•27%ofthe£0.6minloansdisbursedbeing

repaid.

Value chainsIn addition to EDP, Oxfam also works with small-scale growers to establish links with larger commercial organisations in value-chain relationships.

In early 2011, we began an innovative pilot project which brought together a number of Guatemalan producers’ associations, international food companies, and researchers to establish the Guatemala Highland Value Chain Development Alliance. It aims to expand opportunities in sustainable, commercial vegetable production for rural communities.

Working with local partner ADAM, we aim to support 480 small-scale farming families to supply quality frozen vegetable markets – both domestic and export – through Sysco Corporation’s and Superior Foods’ supply chain. Guatemalan vegetable processor Alimentos SUMAR is providing technical assistance, seedlings and agricultural supplies, and is testing new women-focused business models. Oxfam and ADAM are advising producer organisations on business plans, pricing, collection and transport, and production of agricultural supplies to further enhance the producers’ role in the supply chain.

Launch of the Small Enterprise Impact Investing FundEarly 2012 saw a major milestone in our work on finance provision for small enterprises in the developing world. We launched the Small Enterprise Impact Investing Fund (SEIIF) in partnership with The City of London Corporation and Symbiotics, an experienced asset management firm specialising in micro-finance and small and medium enterprise (SME) impact investments.

Unlike our EDP which directly supports the foundation of small businesses, SEIIF invests in financial intermediaries that provide funds for established SMEs in developing countries,

“Over many years, Oxfam’s work in supporting local communities to build sustainable futures for themselves, and their interest in finding new and innovative ways to do that, is what makes me a supporter.”Gavin Stewart, Investment Propositions Director, Insurance Division, Lloyds Banking Group and Chair, Oxfam Scotland Advisory Group

1 A system of cultivation intended to maintain permanent agriculture or horticulture by relying on renewable resources and a self-sustaining eco-system.

TRUSTEES’ REPORT THE RIGHT TO A SUSTAINABLE LIVELIHOOD 11

sustainable growing methods including permaculture1, and to produce a wider variety of fruit and vegetables using large greenhouses. The sector is now burgeoning and rural communities are operating independently. Significant strides have been made in tackling poverty and people’s commitment to the programme.

The new enterprise, Quodev, aims to continue to create thriving local agri-businesses amongst poor farming communities. It will capitalise on programme assets and the expertise of the team, five of whom are former Oxfam staff. It will also have a business arm offering consultancy and advice on development and rural issues to public institutions, businesses and NGOs. All profits that Quodev makes will be channelled back into rural projects.

780,000People supported to improve production.

250,000 Women provided with specific support to improve their economic position.

5,000Number of rural and community-based enterprises supported.

250,000Number of people supported to improve their access to markets.

PROMOTING SUSTAINABLE LIVELIHOODS GLOBALLY IN 2011/12

Oxfam provided Lirije Basha (foreground) with everything she needed to make a successful fruit and veg business, from business training to equipment and material to build her greenhouse. The business is run by eight women from the Deshat village area in Albania. Photo: David Levene

In July 2011, we launched one of our biggest ever appeals and called on governments and donors to act with greater urgency, as it became increasingly clear that the international response was failing to keep pace with the spiralling emergency. The situation was particularly dire in Somalia, where the effects of the worst drought in more than 60 years were exacerbated by conflict. Famine was officially declared by the UN in several areas.1

Thanks to a generous public response, Oxfam was able to support almost three million people in some of the worst-affected areas. We delivered clean water, sanitation facilities, support for livestock, and cash to enable people to buy food and keep markets functioning.

•InEthiopia,weprovidedemergencysupporttolocal communities and to refugees from Somalia. In total, we reached more than 425,000 people, many of them in remote areas that took several days to reach.

•InKenya,wehelpedonemillionpeople,manyofthem in Turkana and Wajir. This included a major ‘de-stocking’ programme, with Oxfam buying up some of the weakest animals to ensure that

Throughout 2011/12, our staff and partners worked to deliver life-saving aid, to give people the support they need to rebuild after disaster, and, crucially, to help communities become more resilient to future crises. We provided humanitarian assistance to at least 6.5 million people in 27 emergencies, many of which didn’t make the news headlines. These included:

•Afghanistandrought:200,000people•Cambodiafloods/typhoon:70,000people•Chadcholeraoutbreak:500,000people•Côted’Ivoire/Liberiaconflict:75,000people•DRCconflict/cholera:500,000/150,000people•Guatemalafloods:20,000people•Hondurasfloods:20,000people•Myanmarfloods:15,000people•Philippinestyphoon:140,000people.

EAST AFRICA FOOD CRISIS

In the summer of 2011, with successive rains having failed to arrive in many parts of Somalia, Ethiopia and Kenya, more than 12 million people were left in desperate need of aid. Staple foods became unaffordable and hundreds of thousands of animals died, depriving people of their main assets and source of income.

LIFE AND SECURITYIn 2011, East Africa experienced the worst food crisis of the 21st century, with millions going hungry and many people facing starvation. Oxfam asked why the world had allowed this to happen again – and recognised that we need to bridge the divide between our own development and humanitarian work to deliver a faster, better response.

1 Famine can only be declared when, among other indicators, more than two people per 10,000 die each day and acute malnutrition rates are above 30%.

July 2011: aid supplies are loaded onto trucks ready for the long journey to Hilaweyn camp, Ethiopia. Water tanks, tap stands and latrine bases are among the items sent from Oxfam’s emergency warehouse in Bicester, UK. Photo: Jane Beesley

owners received an income before their animals died, and that meat was distributed to those familes who needed it most. In Dadaab camp, home to several hundred thousand refugees fleeing conflict and famine in Somalia, we provided life-saving water and sanitation facilities.

•Somaliawastheepicentreofthefoodcrisis,with more than half the population affected by drought and famine. While conflict means it is too dangerous for us to have staff in Somalia itself, we were able to reach 1.3 million people through our network of trusted, long-term Somali partners. Activities included providing water and sanitation services in Mogadishu and for hundreds of thousands of displaced people in the Afgooye corridor, and enabling people to buy food through a cash transfer programme – in some cases trialling mobile phone technology.

TRUSTEES’ REPORT THE RIGHT TO LIFE AND SECURITY 13

5,700,000People provided with access to clean water and accompanying health promotion.

2,000,000People benefited from improved sanitation facilities, greatly reducing the spread of disease in camps.

180,000People provided with emergency shelter in the wake of disaster.

900,000People provided with support to resume their livelihoods. health and hygiene practices.

1,250,000People benefited from the distribution of food, cash or vouchers, enabling them to survive a crisis.

OUR GLOBAL HUMANITARIAN PROGRAMME 2011/12

Learning lessons from the East Africa crisis In Ethiopia and in parts of Kenya, where there

has been considerable effort over several years by Oxfam and many others to build resilience to disaster, crisis on a much bigger scale was averted. But despite early warning systems indicating a possible emergency in August 2010, it took a declaration of famine in parts of Somalia for the international community to scale up its relief efforts.

A report by Oxfam and Save the Children, ‘A Dangerous Delay’, examined the factors that allowed the drought to escalate into a crisis. It concluded that a culture of risk aversion caused the delay, with many donors wanting proof of a humanitarian catastrophe before acting to prevent one. The report made concrete recommendations for national governments, the international aid community and donors.

There were lessons for Oxfam too: we acknowledged that there needs to be greater flexibility between our development and humanitarian work. Long-term programmes are in the best position to respond to forecasts of a crisis: there are established links with

communities and partners, the complexities are understood, and work has already been negotiated with government bodies. But we have to get better at adjusting the scale and priorities of existing programmes and providing the necessary technical and staff capacity to allow speedy expansion. In the coming year we will be working to close this artificial gap.

HUNGER IN WEST AFRICA

The challenge of more closely integrating development and humanitarian work was already being put to the test in early 2012, when we were once again warning of the threat of a

Hamra Housman helps to dig an irrigation channel as part of a cash-for-work scheme in her village in Chad. People are already resorting to desperate measures to feed their children, such as searching for grain in ants’ nests. Photo: Andy Hall

14 THE RIGHT TO LIFE AND SECURITY TRUSTEES’ REPORT

“Funding awarded in 2011 supported Oxfam’s emergency relief responses to floods in Sri Lanka and Guatemala, drought in Afghanistan and food security in West Africa... Oxfam ensured the needs of recipients were identified and met with precision and diligence.” Senator Paul Routier MBE, Chairman, Jersey Overseas Aid Committee

humanitarian emergency – this time across the Sahel region of West Africa. Mirroring the scale of the crisis in East Africa the previous year, drought, conflict and rocketing food prices were placing millions of people at risk. By March, levels of malnutrition in areas of Chad, Burkina Faso, Mali, Mauritania, Niger and northern Senegal were becoming dangerously high. In the same month we launched a major humanitarian appeal. We also called on the international community to learn the lessons from the East Africa emergency and take early preventative action.

PAKISTAN FLOODS

Nearly seven million people were affected by the monsoon rains which caused severe flooding in Pakistan’s Sindh province in August and September 2011. We were already enabling people in the region to rebuild their lives in the

wake of the 2010 floods – the worst in the country’s history. We were well placed to help, along with the partners we had trained and worked with in the previous 12 months.

In the first six weeks of the disaster, we:•Deliveredcleanwatersuppliesto250,000people;•Conductedhygienepromotionsessionswith

17,000 people;•Provided31,500peoplewithhygienekits;•Assistedthesearchandrescueof58,000people.

In the months following the floods we worked with other agencies to focus attention on this ‘forgotten emergency’. In February 2012, we released a joint agency paper calling on the international aid community to provide timely and adequate funding and technical support to Pakistan’s efforts. By the end of March 2012, we had reached 570,000 people in the eight worst-affected districts of Sindh.

Badoo, a farmer, waits for a distribution of animal fodder by Oxfam in his village in Shahdadpur, Sindh. Photo: Asim Hafeez

TRUSTEES’ REPORT THE RIGHT TO LIFE AND SECURITY 15

HAITI EARTHQUAKE RESPONSE

January 2012 marked the second anniversary of the Haiti earthquake, which claimed 220,000 lives and left 1.5 million people homeless. The scale of the disaster – combined with the extreme poverty and lack of infrastructure that already existed – has made this relief effort one of our most challenging. The rebuilding of Haiti is going to take many years, and we are committed to supporting it.

As work in the emergency camps was phased out, we focused on expanding our initiatives in

16 THE RIGHT TO LIFE AND SECURITY TRUSTEES’ REPORT

In Kenya’s Turkana district, our emergency cash transfer scheme helped to stimulate the local economy by distributing monthly cash payments to more than 5,500 vulnerable families, boosting businesses and giving people choice.

“With food aid, we can only eat maize for the whole month,” says Sabina Loliyak, “but if we have cash we can buy the things we need.” Photo: Andy Hall

“Oxfam is the first organisation that has shown us what accountability means. We now always explain to people what we are doing in a community. We also ask this question of other NGOs who come to work here. We shared ideas with Oxfam from the start. They worked with us and did not impose their ideas on us.” Fleurisme Ismael, who works for a government agency in Haiti

inner-city neighbourhoods and rural areas outside Port-au-Prince. We continued to forge productive partnerships with local and national government bodies as well as with local partners, as this is essential to delivering public health and other services at scale. And at community level, we worked hard to ensure that people are empowered to hold their leaders to account. In total, we supported more than 532,000 people in Haiti during 2011/12.

WHY CASH WORKS

In certain circumstances, short-term injections of cash – sometimes in the form of vouchers, or in return for vital work in the community – can tide a community over during the crisis, enabling it to recover much more quickly afterwards. Cash transfers have a number of advantages over other types of aid. They empower the recipient by giving them choice; promote the purchase of local products, fuelling the local economy; and are extremely cost-effective and easy to monitor.

In 2011/12, cash transfer programmes helped us to reach people in remote areas and to overcome logistical difficulties and security risks – for example, in Yemen and Somalia.

ESSENTIAL SERVICESIn 2011/12, Oxfam continued to push for state investment in free public services, backed by international funding, which hundreds of millions of people desperately need. As our campaign successes demonstrated, with the right combination of grassroots activism and government lobbying, our limited resources can go a very long way.

When it comes to achieving essential services for all, the resources at Oxfam’s disposal are a drop in the ocean considering the level of need. That’s why we have developed an approach that makes maximum use of our limited resources to bring about permanent change – also known as ‘leveraging’ or punching above our weight. The examples below demonstrate how, by combining national and global lobbying with local programmes which empower communities to hold their leaders to account, we contributed to policy changes that will have a long-term impact on millions of people.

At community level, we continued to work directly with the poorest and most marginalised groups, strengthening their capacity to articulate and achieve their rights to quality education and health provision. This local knowledge and experience was essential in informing and shaping our national advocacy, alliances and strategic partnerships. In 2011/12, we continued working to improve girls’ access to education, ensuring that local governance systems were functional and accountable to communities.

HEALTH CAMPAIGN SUCCESS IN ZAMBIA

In 2011, we delivered a dynamic national campaign in Zambia which led to a massive increase in the health budget. While health care has been free in rural areas since 2006, clinics and hospitals in urban areas continued to charge user fees, and the country still faced a chronic shortage of health workers and essential medicines. As part of our national ‘Vote Health for All’ campaign, Oxfam worked with partners to engage thousands of Zambians across the country in the call for better health care:

•Invillagesandtownsacrossthecountry,artistsand musicians spread the campaign message through song, drama and poetry.

•Aseriesofmeetingswereheldforvoterstodiscuss health issues with parliamentary candidates. More than 50 candidates, many of whom were later elected, signed a pledge to improve health care.

•Inthecapital,Lusaka,aconcertledbyapopular musician kickstarted the national campaign and gained widespread media coverage.

the Ghanaian government announced that it would make health care free for expectant and breastfeeding mothers. The political will exists – but four years after the policy came into force, it’s clear that the necessary staff, facilities and systems do not.

Within days of the new government forming, it became clear that ‘Vote Health for All’ had achieved monumental success. Commitments were made to increase health expenditure by 45%, which includes funding for an additional 2,500 health workers, the removal of user fees from urban health centres, and improved supplies of medicines to clinics nationwide. The budget increase – which equates to US$158m – will make a real and lasting difference to poor people in Zambia. With only a modest investment of US$83,000, Oxfam played a vital role in achieving this breakthrough.

GHANA ‘BIRTH RIGHTS’ CAMPAIGN

Every week, around 75 women in Ghana die because of complications during pregnancy and childbirth. That’s in spite of the fact that in 2009

18 THE RIGHT TO ESSENTIAL SERVICES TRUSTEES’ REPORT

“I am the only midwife for 16,000 people – it’s a 24-hour service. People should join hands with the Ghanaian government to bring the maternal mortality rate down. It’s a joy to bring a child into the world – why should it die?”Cecilia Addah, midwife in Ghana’s rural Upper East region

Selina Fletcher is handed her newborn baby girl at Korle Bu Teaching Hospital in Accra, Ghana, where she received free, professional care from trained midwives. Photo: Abbie Trayler-Smith

In 2011 we launched the ‘Birth Rights’ campaign, calling on the government in Ghana to expand public health services and staff so that more women receive good quality, free health care, especially in rural areas, which remain woefully under-served. As in Zambia, the campaign is timed to coincide with the run-up to vital elections, which take place in late 2012. National advocacy led by our partners in Ghana went hand in hand with campaigning at village level to ensure that more people are aware of their rights and hold their leaders to account.

This achieved early results: as more women learned about their right to free health care there was a significant increase in the number of pregnant and breastfeeding mothers attending clinics.

The Royal College of Midwives and the Royal College of Obstetricians and Gynaecologists are among several organisations campaigning with us in the UK to raise public awareness and create political pressure. With Ghana’s public health system receiving 4.9% of its funding from the UK,1 it is absolutely crucial that our government honours its commitment to spend 0.7% of its budget on overseas development by 2013. Our local campaign groups boosted popular support for the campaign with photo exhibitions and film screenings across the country. Images and short films documenting the experiences of two mother and two midwives in Ghana brought the issue to life for the thousands of people who attended events in maternity wards, pubs, clubs, church halls and offices nationwide.

IMF GOLD CAMPAIGN VICTORY

In February 2012, the International Monetary Fund (IMF) agreed to use over a billion dollars’ worth of windfall profits from its gold reserves to assist poor countries. Its announcement followed concerted lobbying by 58 leading global civil society networks – including Oxfam International, ActionAid and global Jubilee networks. Millions of people in poverty will benefit from the IMF’s decision, with governments able to put more money into health and education as a result of the new source of

funding. It’s another great example of how, using only limited resources, we can influence decisions that have billion-dollar impacts.

EUROPE BACKS ROBIN HOOD TAX

The Robin Hood Tax campaign for a global financial transaction tax gained strength in 2011. At the G20 summit in France in November, governments, the European Commission and the UN Secretary General together outlined their backing for a financial transaction tax as a means of raising development finance, and 1,000 leading economists wrote to G20 ministers in support of the Robin Hood Tax.

Oxfam has played a leading role in the campaign, which calls on governments to repair the damage resulting from the financial crisis through a tiny tax on financial transactions. If implemented globally, this could raise up to £250bn each year to tackle poverty and climate change worldwide. More than 500,000 people in 40 countries now back the campaign.

TRUSTEES’ REPORT THE RIGHT TO ESSENTIAL SERVICES 19

Actor Bill Nighy continued to champion the Robin Hood Tax campaign. Photo: Anna Nolan

1 DFID, ‘Budget Support for Ghana Health Sector Support Programme’/Ghana government budget statement 2011.

“The campaign is going from strength to strength. And this is a key moment for the Robin Hood Tax. The system needs fixing. The money went bad. Something went terribly wrong, and the Robin Hood Tax could be part of a process of rehabilitation.”Bill Nighy, actor, campaigner and Oxfam ambassador

GROW – THE VOICE OF POOR FARMERS

Land grabs are one of the four major elements that the GROW movement (see page 6) seeks to address. These are deals which enable international investors to force families from their homes and farms, often contravening people’s rights and global safeguards.

This modern-day land rush has resulted in around 50 million hectares of land being sold, leased or licensed in large-scale deals since 2001. It’s all part of a drive to produce food for developed countries, or meet damaging biofuels targets, or the result of speculation.

GROW raises the profile of this problem, and gives a voice to many of the poor people whose rights and needs are being ignored.

Land grabs: Uganda In 2011, we highlighted six case studies from

around the world: Guatemala, Honduras, Indonesia, Peru, South Sudan and Uganda. The case in Uganda focused on the loss of livelihoods where more than 20,000 people in two districts were evicted to make way for development by a British timber firm, the New Forests Company (NFC).

Oxfam, the Uganda Land Alliance and thousands of campaigners challenged the company and its investors to take seriously the concerns of the affected communities. In 2011, NFC and the communities agreed to a mediation facilitated by the World Bank’s private sector complaints ombudsman. This body handles complaints from communities affected by investments made by the International Finance Corporation – the World Bank’s private sector arm – which invests in a fund that has a stake in NFC. Oxfam and the Uganda Land Alliance continue to support the communities in the ongoing mediation process.

The process has opened the way for the affected communities’ complaints to be heard. Although there remains a long way to go, and evicted communities still face an uncertain future, this is an important first step in their fight for justice. And it’s the courage and tenacity of the communities, and the mass of public support, that have made this happen.

Land rights: PakistanPakistan faces a huge, long-term challenge to rebuild itself after the devastating floods of 2010 and 2011 (see page 15). But this also presents an opportunity to address the land rights issue.

BEING HEARDMillions of people, particularly those from poor communities, have little or no say in the decisions that affect them. Yet it has been proved time and again that giving people a voice is a powerful weapon in overcoming poverty and injustice. This is why the right to be heard runs through all our programmes and acts as a positive force for change.

Augustin Allen (not his real name) claims to have been evicted from land he says was given to him in recognition of his father having served in the British forces during the Second World War. He is one of more than 20,000 people to have been evicted from forest land in Central Uganda.Photo: Simon Rawles

People’s inability to own land is a major barrier to overcoming poverty, and so we are pressing the government of Pakistan, the international community, landlords, and civil society organisations to address land inequality as part of all recovery and reconstruction plans.

Our work with the Sindh government to redistribute land to poor women farmers shows what can be achieved. Zainab is one of 4,800 women to have benefited from the redistribution. On the four acres of land she received, Zainab now grows wheat and provides

TRUSTEES’ REPORT THE RIGHT TO BE HEARD 21

world. This included intensive lobbying at the UN headquarters in New York.

This is part of the countdown to critical negotiations in July 2012 at the UN where governments are scheduled to agree an international Arms Trade Treaty. Oxfam has been campaigning for global controls on the arms trade since 2003 and now, for the first time ever, the world is on the brink of reaching an historic agreement to bring the arms trade under control.

Oxfam wants to see a ‘bullet-proof’ treaty that will prevent arms transfers where there is a clear risk that they will fuel conflict, poverty or human rights abuses. Together with our campaign partners, we will be working hard to push governments to negotiate the toughest possible treaty, which must include all conventional arms and ammunition, and must have clear rules against which arms transfers are assessed and a practical implementation mechanism.

employment to her neighbours. As well as acquiring new farming and business skills, she has also gained status and respect in her community. “I have my brain and I have my land – that’s all I need,” she says.

The success of the scheme has encouraged the provincial government to consider the wider issue of land ownership. Oxfam’s International Director, Penny Lawrence, explains: “If the Sindh government has a look at land tenure then we will be leveraging really significant change on an intractable issue in one of the most challenging countries to work in in the world.”

ARMS TRADE TREATY – PERSISTENCE PAYSOver the year, as part of the global Control Arms coalition, we stepped up our campaigning momentum in support of ‘Speak Out: Control Arms Now!’ online and street-level actions across the

22 THE RIGHT TO BE HEARD TRUSTEES’ REPORT

Flooding destroyed the land Abrahim used to work on, growing rice and wheat. It forced him to leave his home in Sindh province, Pakistan, and his wife Hassina and two young daughters, to migrate to Shikapur to work on road construction. Oxfam is working with the Sindh government on land redistribution as part of post-flood recovery plans. Photo: Timothy Allen

Control Arms received a nomination for the 2012 Nobel Peace Prize by the International Peace Bureau (IPB), a testimony to the efforts of thousands of people worldwide who have taken action in support of the campaign.

OXFAM AND THE ARAB UPRISINGEvents in Egypt unfolded rapidly over the year, from regime change to voting for a new government.

An Oxfam partner, Al Karma Foundation, helped to train 240 female community leaders from the Beni Suef governorate in political participation. The workshops increased the political awareness of community leaders, who then passed on their knowledge to around 11,000 women and their families in the wider communities.

The programme’s objective was not only to teach women the importance of participating in elections, but to instil a sense of self-confidence. Its aim was to politically empower women to tackle their own problems by using their votes and taking an active role in this critical stage of the country’s history.

Although in December’s first round of voting no women candidates were elected, Egyptian women refused to accept a government without female representatives and are working to break down cultural stereotypes.

UKPP – SINGLE PARENTS SPEAK OUTWherever we work, one of our aims is to bring people living in poverty together with decision-makers.

In the UK, single parents are among the groups most affected by the government’s shake-up of the benefits system. While Oxfam’s wider

proposals on welfare reform have not been implemented, we made progress last year in ensuring that the needs and concerns of people living in poverty are heard.

We support the Single Parent Action Network (SPAN), which among its many services runs ‘One Space’, an online community offering advice and support to single parents. This captured the level of fear and concern created by the government’s new Work Programme, with an avalanche of posts from parents anxious about how they were supposed to combine work placements with looking after young children.

Jenny was one of those who posted. On 12 September 2011 – as a result of SPAN’s concerted lobbying of the government in partnership with Oxfam and others – she had the chance to raise her concerns face-to-face with decision-makers at the House of Lords. The voices of Jenny and a large number of other single parents also contributed to SPAN’s report on the Work Programme, which has been widely distributed among policy-makers.

“There was a sense that people are being punished by a system that does not recognise what actually goes on at grassroots level,” Jenny explains. “The Lords and Ladies present recognised that we do have a very strong case, which was so encouraging.”

TRUSTEES’ REPORT THE RIGHT TO BE HEARD 23

“Women’s rights in Egypt need a lot of work. Women are plainly ignored, we need to play a bigger role. Women will not be silent if their rights are stripped from them, there will only be justice from now onwards.” Dina, sales executive, Cairo

60,000Women we supported in leadership positions in their communities and elsewhere.

65,000Women and men trained in advocacy, campaigning, and public and media engagement.

100,000Women and men supported to advocate directly with local government and others.

150,000People we supported to lobby companies and institutions to improve their practices.

EMPOWERING PEOPLE IN POVERTY WORLDWIDE IN 2011/12

WOMEN’S ROLE IN VALUE CHAINS

Experience has shown that a successful long-term strategy for tackling poverty and improving lives for whole communities is to provide women with business opportunities.

Throughout 2011, we continued to support indigenous Kokonuco women in Patugó, southwest Colombia, as part of the Association of Women Entrepreneurs. The women also run a successful local depot where farmers can buy basic supplies such as fertiliser.

The project had previously negotiated a contract to sell milk directly to multinational dairy company Alpina. The project also supported the installation of the Association’s own collection centre and developed an ambitious strategy to improve the quality of milk. Together, these factors helped to increase the sales price by 43% and the volumes sold by 7%, significantly boosting the Association’s profits.

WOMEN AND TECHNOLOGY

We have been increasing our work in the area of digital technology. Its enormous potential to

empower people living in poverty has been seen in a number of projects supporting women in several countries. It has also attracted a leading international brand, Nokia, to become involved with Oxfam and help us increase the impact of our activities.

Oxfam and Nokia 2011 saw the completion of the first year of our

three-year corporate partnership with Nokia, which aims to support Oxfam’s work to enhance the role and impact of digital technology in helping people to escape poverty.

The original partnership focused on developing consumer-based applications for Oxfam in the UK, enabling supporters to make donations and buy items from the Oxfam Unwrapped gift range. However, Nokia’s involvement has grown to include financial support, expertise and specialist technological innovation.

Nokia is now collaborating with us to support our programmes in areas such as health promotion, logistics, water and sanitation, and the potential to work together on solutions that we can take into the field to enhance our effectiveness.

EQUITYGender inequality is a major barrier to ending poverty. This is why we continue to work hard to end all forms of gender violence and promote the role of women in all our programmes by changing attitudes, providing business opportunities and training, and introducing new technology.

Female Commune Councillors (FCCs)received training in how to use their mobile phones most effectively, as one FCC, Sorm Lai explains: “Through text messages from the phone, villagers can get my support easily, so that my relationship is improved. My neighbours appreciate my support and they value me and my performance.” Photo: Chaliya Sophasawatsakul

TRUSTEES’ REPORT THE RIGHT TO EQUITY 25

The pink phone phenomenon In Cambodia, another innovative digital

technology project is helping women in rural communities to improve their lives and their incomes and to take up leadership roles.

Women for Prosperity, an Oxfam partner, used our Digital Vision – a small grant development programme – to provide 45 aspiring women community leaders across three provinces with mobile phones – in pink. And in August 2011, we introduced a new service to make

communications even more effective via SMS mass text messaging. Now, rather than having to cycle between different villages, women can easily communicate with each other, co-ordinate meetings and share information. They can also use the phones to seek assistance on a variety of issues from emergency health care through to preventing domestic violence.

In Armenia, a similar Oxfam digital project aims to improve the economic empowerment of women in isolated rural communities.

After just two years, the number of households affected by domestic violence halved, from 60% to 30%. In addition to the drop in gender-based violence, there have been increased participation by women in the public sphere, growing economic independence for women, and a rise in the numbers of girls attending school. This success has encouraged us to expand this approach to other districts in 2012.

INTERNATIONAL WOMEN’S DAY

Many of the 2012 Oxfam International Women’s Day events that took place across the world celebrated women as food producers, and drew attention to the fact that of the 1.3 billion people living in extreme poverty, almost 70% are women and girls.

On 8 March, women across Britain signed up to hold over 1,000 ‘Get Together’ events at home, at work and in the community – from tea parties to brass band concerts. The events raised awareness and over £150,000 for our work with women worldwide.

Here, the text messaging service enables the 30 members of two women’s co-operatives to keep in touch, and ensures that people don’t miss meetings or training activities. It also keeps members up to date with weather forecasts and market prices to enable better business planning.

The fact that the phones are pink signifies that they belong to the women – it also deters men from using them. Naira, chairperson of a farmers’ co-operative, explained: “Previously I had to use my husband’s phone, which created a lot of problems. I need to be linked with other co-operative members and be able to reach them. Now I can communicate with them without any problems. And because the phones are pink, the men in our community won’t use them.”

CHANGING ATTITUDES IN MALAWI

Our vision is that by focusing on women’s rights, many more women will gain power over their lives.

We have been working with a local partner, Women’s Legal Resource Centre, across 120 villages in Balaka District in Malawi for two years as part of a project to address harmful social and cultural practices to prevent the spread of HIV and AIDS.

Fifty facilitators from selected villages were trained in how to hold ‘circle discussions’ with community members on the impact of issues such as domestic violence, initiation practices and wife-swapping. Groups included traditional leaders, many of whom were inspired to spread the change message themselves.

26 THE RIGHT TO EQUITY TRUSTEES’ REPORT

2,000,000Women and men received information or education on women’s rights.

1,750,000Women and men involved in activities to reduce gender-based violence.

80,000Women supported by programmes to enhance their political participation.

750,000Women supported to gain improved access to essential services, including social protection.

PROMOTING GENDER EQUALITY GLOBALLY IN 2011/12

“If a man is beating his wife, I can use my phone to call the police and they listen because I’m a Councillor, otherwise it would be difficult to get them to intervene. If I don’t get the proper service, I will go over their heads and phone the provincial commander.” Lon Ny, Councillor, Kratie, Cambodia

2011/12 saw extraordinary efforts by our trading team in the face of not only difficult economic conditions, but a potentially disastrous fire. The year also saw our fundraisers involved in an exciting high-profile event, which will help cement important new alliances in the Gulf region.

MAXIMISING VALUE

Donating items to Oxfam is essentially recycling at its most effective. Our trading operation ensures that we maximise the value of every item through our shop network, via our unique Wastesaver clothes recycling operation and through projects further afield.

Frip EthiqueEarly in 2012, Oxfam devised the Big Bra Hunt, an eye-catching, high-profile donation

campaign designed to hit the media and shops in April, aimed at encouraging women to donate a million unwanted bras.

Most bras would be sorted at our UK-based Wastesaver operation, then sold to Frip Ethique, an Oxfam livelihoods project in Senegal. Frip Ethique employs around 40 women and men who sort the clothes and sell them to local traders at a profit, thus providing employment opportunities and meeting the needs of local people. Profits are invested in other local Oxfam projects in West Africa.

Sarah Farquhar, Oxfam Trading’s Head of Retail Brand, says: “The sale of bras in Oxfam shops and through Frip Ethique is an innovative way to raise money for livelihood projects that enable families to support themselves and send their children to school.”

SUPPORTING THE PROGRAMME

TRUSTEES’ REPORT SUPPORTING THE PROGRAMME 27

Rama Barre sorts clothing from Oxfam in the UK at Frip Ethique sorting centre in Dakar, Senegal. Frip Ethique buys over 100 tonnes of clothing a month from Oxfam Wastesaver at market rates, then sorts it and sells it at a profit. Photo: Abbie Trayler-Smith

WastesaverIn April 2011, our Wastesaver operation experienced a devastating fire which destroyed buildings and specialist machinery. The fire also caused the biggest loss of donated stock in our history, and precipitated our first ever national emergency appeal for stock ahead of the lucrative music-festival season.

There was a huge public response and the efforts of Wastesaver staff were equally impressive, manually sorting 11 tonnes of clothes a day in temporary premises. As a result, Oxfam festival shops raised £255,000, exceeding the 2010 total. And fortunately, our insurance cover enabled us to begin rebuilding.

Oxfam’s then Trading Director, David McCullough, praised the response of staff: “People have shown incredible spirit and resilience to get our sorting operation back up and running.”

STRENGTHENING RELATIONSHIPS

The eighth Dubai International Film Festival was a first for Oxfam. Working in partnership with the Festival, Oxfam America and Dubai Cares, it was the first time that we had been involved in an event of this scale in the Gulf region.

The gala evening generated positive PR internationally across Arabic, Hindi and English-speaking media, and raised over US$1m via tickets and the auctioning of unique donations, many donated by high-profile celebrities. Over 70% of the total went to fund 24 girls’ schools in Pakistan, and the rest to our unrestricted funds.

A number of high-profile Oxfam Ambassadors spoke on the night, live or on video, including Helena Christensen, Rahul Bose, Scarlett Johansson, and Emirati film-maker Ali Mostafa, who related his experiences of visiting an Oxfam project in Mali.

The event was indicative of the role that major foundations in the Gulf are playing in supporting humanitarian and development work worldwide.

OXFAM AND THE LONDON MARATHON

Oxfam was selected as the 2011 Virgin London Marathon official charity – the first time an international development agency has received this accolade.

This opened up an additional 200 places for Oxfam runners, which meant that the event raised around £800,000, almost three times more than our usual total. Being the official charity also meant increased publicity, raising our profile as a charity of choice amongst the general running community for future races.

Additional PR was generated by world record attempts by two Oxfam entrants. A sizeable total was raised by our celebrity Oxglam Team, who had seen our work at first-hand, having visited Oxfam projects in Tanzania. All money raised from the 2011 Virgin London Marathon went to fund our projects in Ethiopia.

WORKING WITH OXFAM INTERNATIONAL

By the end of March 2012, 26 countries had ‘gone live’ with our impact-boosting Single Management Structure (SMS), 17 of which are managed and supported by Oxfam GB.

SMS aims to increase the influence and effectiveness of the Oxfam International confederation, and the closer collaboration between affiliates over the year helped to boost income. There were an increased number of joint proposals, a rise in funding transfers between affiliates, and increased income raised through multi-affiliate grants. As a result, we significantly exceeded the €50m fundraising target, four years ahead of schedule. Also in 2011, the decision was taken that all affiliates would share a single strategic plan.

“I came to Mali to see the results of a US$16m Dubai Cares programme. Working in partnership with Oxfam, it’s supporting projects for schools, small-scale producers, pastoralists and cotton farmers. To witness all this was an incredible experience. Each donation has a huge ripple effect of positivity. It gives people the chance to do things for themselves, and that’s what’s important.” Ali Mostafa, film-maker, UAE

28 SUPPORTING THE PROGRAMME TRUSTEES’ REPORT

Oxfam is a registered charity (registration number 202918) and is constituted as a company registered in England and limited by guarantee (registration number 612172). Oxfam is also registered in Scotland (SC039042). Its objects and powers are set out in its Memorandum and Articles of Association.

Oxfam has several subsidiaries, three of which are consolidated into our group accounts: these subsidiaries are Oxfam Activities Limited (our trading subsidiary), Finance for Development Limited (a micro-credit institution in Azerbaijan) and Frip Ethique SARL (a private sector enterprise in Senegal). Oxfam also has a dormant subsidiary, Just Energy Limited (see Note 9a to the accounts).

Oxfam Activities Limited raises funds by means of trading activities. Its principal operations are the purchase of goods from commercial suppliers to be sold at a profit. Oxfam Activities Limited paid to Oxfam a profit of £1.3m (2010/11: £1.2m) and interest on working capital of £0.1m (2010/11: £0.1m).

Finance for Development Limited is a limited liability company in the Azerbaijan Republic and provides financial services (mainly credit) on a sustainable basis to people with relatively low incomes who do not have access to other financial sources. Its income for the year was £2.4m (2010/11: £1.9m), offset by £2.0m (2010/11: £1.7m) of expenditure.

Oxfam Activities Limited owns 100% of the shares in Frip Ethique SARL, a company registered in Senegal, which imports second-hand clothing (mainly from Oxfam), and then sorts and distributes it for resale in local markets. The company made a net profit of £0.2m (2010/11: £0.1m) in the year.

Oxfam Activities Limited has a 10.8% (2010/11: 10%) interest in Cafédirect plc (a company registered in Scotland, with registration number 141496), which promotes fair trade, primarily through the marketing and distribution of tea and coffee.

Oxfam is a member of Oxfam International, a separate legal entity registered in the Netherlands as a charitable foundation (registration number 41159611). Oxfam International encourages and coordinates joint activities with 16 other affiliated international agencies, each separately constituted under the appropriate national regulations. See Note 3c to the accounts for details of financial transactions with other members of Oxfam International.

TRUSTEESThe directors of Oxfam are the Trustees, collectively known as Oxfam’s Council. This Council, Oxfam’s governing body, comprises a minimum of ten and a maximum of 14 Trustees.

Trustees serve an initial term of three years that can be extended up to a maximum of six years. The Chair, Vice-Chair, and Treasurer may also serve until the end of their term as Officers. The members of the company are known as the Association, which comprises all the Trustees plus a number of other members up to a maximum of 34. Members are appointed by Council and ratified by the Association. New Trustees are appointed by the Association on the recommendation of Council. Members of the Association have guaranteed the liabilities of the company up to £1 each.

The Council has created three specialist sub-committees to assist it with its work: the Recruitment and Development Group (RADG),the Trustee Audit and Finance Group (TAFG) and a Remuneration Committee. Each committee includes members of Council plus additional members appointed for their specialist knowledge.

The RADG is responsible for ensuring that members of Council have the appropriate balance of skills to discharge their duties as Trustees. Trustees are appointed following open advertising in specialist publications or on specialist websites and following a rigorous interview process. All new Trustees are provided with a structured induction programme. As

STRUCTURE, GOVERNANCE AND MANAGEMENT

TRUSTEES’ REPORT STRUCTURE, GOVERNANCE AND MANAGEMENT 29

part of its ongoing training, Council conducts seminars on key areas, such as risk and accountability. The annual review of board performance includes input from the Chair’s formal discussions with individual Trustees and from an appraisal of the Chair by all Trustees.

The TAFG, Oxfam’s audit committee, chaired by the Treasurer, meets regularly with the external auditors, both with and without the presence of management. The group agrees the internal and external audit plans, reviews the external auditor’s management letter, and monitors implementation of actions required as a result. The TAFG also has the responsibility of ensuring that the audit, risk management and control processes within Oxfam are effective.

The Remuneration Committee is chaired by the Chair of Oxfam. This committee monitors the implementation of Oxfam’s policy on remuneration and benefits for its staff, and reports annually to Oxfam’s Council. It also specifically determines Oxfam’s policy on the remuneration and benefits of the Chief Executive and members of the Corporate Management Team (CMT).

Trustees are also involved in a number of other Oxfam committees, working groups, areas where a duty cannot legally be delegated and areas where there are specific issues around Oxfam’s reputation. Committees include the Pension Committee and the Oxfam Activities Limited Board, both of which have at least one Trustee as a member.

Oxfam’s Trustees are responsible for everything that Oxfam does. However, to ensure that Oxfam is managed efficiently and effectively, the Trustees have delegated a range of day-to-day decision-making powers to the CMT, which reports directly to Council. Trustees have also established appropriate controls and reporting mechanisms to ensure that the CMT operates within the scope of the powers delegated to it. The delegation policy is updated on an ongoing basis and is formally reviewed and approved by Trustees every three years; the last review was in October 2011.

The names of the members of the CMT, Council and the Association, and the committees they have served on, are available in the Corporate Directory (see page 3). The members of the CMT are not directors for the purposes of company law.

Trustees’ statutory responsibilitiesThe Trustees (who are also directors of Oxfam for the purposes of company law) are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing these financial statements, the Trustees are required to:

•Selectsuitableaccountingpoliciesandthenapply them consistently;•Observethemethodsandprinciplesinthe

Charities Statement of Recommended Practice;•Makejudgementsandestimatesthatare

reasonable and prudent;•StatewhetherapplicableUKAccounting

Standards have been followed, subject to any material departures disclosed and explained in the financial statements;•Prepare the financial statements on the going

30 STRUCTURE, GOVERNANCE AND MANAGEMENT TRUSTEES’ REPORT

“I approach giving to charity with a businessman’s brain and that’s why I am such a strong advocate of Oxfam. They deliver an extraordinary level of human betterment for the money they spend. If you are thinking of investing in charity and want to make sure your money is used extremely effectively, then I unequivocally recommend Oxfam.” Richard Reed, CEO and co-founder, Innocent Drinks

concern basis, unless it is inappropriate to presume that the charitable company will continue in business.

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006, the Charities and Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006. They are also responsible for safeguarding the assets of the charity and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the Trustees are aware:

•Thereisnorelevantauditinformationofwhichthe charity’s auditor is unaware;•TheTrusteeshavetakenallstepsthatthey

ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Public benefitCharity trustees have a duty to report in the Trustees’ Annual Report on their charity’s public benefit. They should demonstrate that:

1. They are clear about what benefits are generated by the activities of the charity. This report sets out in some detail the activities carried out to further each of Oxfam’s five strategic aims, the types of programmes funded and the number of beneficiaries reached.

2. The benefits must be related to the objects of the charity. Each of Oxfam’s five aims is related to, and intended to further, Oxfam’s charitable objects, which are “to prevent and relieve poverty and to protect the vulnerable including

through humanitarian intervention; to advance sustainable development; and to promote human rights and equality and diversity, in particular where to do so contributes to the prevention and relief of poverty”.

3. The people who receive support are entitled to do so according to criteria set out in the charity’s objects. Wherever possible, the views and opinions of people living in poverty are sought in the design and implementation of programmes of assistance. This approach helps to ensure that programmes are targeted to people in need, take into account their assessment of their own needs, and that beneficial changes to the lives of people living in poverty can be evaluated and assessed.

Trustees are therefore confident that Oxfam meets the public benefit requirements, and they confirm that they have taken into account the guidance contained in the Charity Commission’s general guidance on public benefit where applicable.

Risk managementThe Council of Trustees has overall responsibility for Oxfam’s system of internal control. Such a system of control can provide only reasonable, and not absolute, assurance against inappropriate or ineffective use of resources, or against the risk of errors or fraud. These risks are further heightened given the difficult nature of communications and institutional and financial infrastructure in some parts of the world where Oxfam operates. There is clear delegation of authority from Council through the Chief Executive and the CMT to the rest of the organisation. On an annual basis the major strategic and operational risks that Oxfam faces – and the ways in which these are being monitored, managed, and mitigated – are assessed by the CMT and considered by Council. The control framework approved by Council is subject to the following review and testing:

TRUSTEES’ REPORT STRUCTURE, GOVERNANCE AND MANAGEMENT 31

•TheInternalAuditdepartmentcarriesoutaprogramme of audits across all operations and activities, which is approved by the TAFG and is based on an agreed cycle of audits of the international programme and the major risk areas as identified by the CMT and Council.•TheHeadofInternalAuditsubmitsregular

reports to the TAFG on audits conducted, risks identified and management’s response to their findings, as well as her/his independent annual opinion on internal control. •TheCMT,viaitsControlAssurancereport,

provides Trustees with an annual opinion on the control environment.•Boththeexternalauditors

(PricewaterhouseCoopers LLP) and the Head of Internal Audit meet annually with the TAFG in private session independent of management.•TheTAFGprovidesanannualreporttoCouncil

on its view of the control environment within Oxfam.

In addition, Oxfam has clear and easily accessible whistleblowing procedures in place and has a Loss Prevention team whose role is to investigate incidents of loss, theft or fraud, recover losses wherever possible and provide training for staff on incident management and reporting. These initiatives help ensure that breaches and weaknesses within the control framework are identified and investigated.

Council recognises that, to achieve the objectives of the charity, the nature of some of Oxfam’s work requires acceptance of some risks which are outside Oxfam’s control – i.e. risk which cannot be eliminated or fully managed – but where this happens there is active and clear monitoring of the risk. Council considers that systems and controls are in place to monitor, manage, and mitigate Oxfam’s exposure to major risks. These include, among other control mechanisms, the maintaining of Oxfam’s general reserves at the levels stated on page 39, and the review of key systems and processes by the internal audit function.

COMMUNICATING WITH STAFF AND VOLUNTEERS

Oxfam has well-established arrangements for consulting and involving staff in its work. Management and staff bodies negotiate terms and conditions of employment through the Staff Associations in countries outside the UK, and through the Oxfam Negotiating Committee in the UK. There are many other formal and informal opportunities for consultation. All managers are expected to hold regular meetings with their staff, to provide an opportunity for communication of information and discussion of events as they develop. To keep staff and volunteers informed, Oxfam produces a monthly letter from the Chief Executive, a monthly International Division bulletin, and a bi-monthly magazine for shop volunteers. We maintain an intranet site that provides staff with information, including that about Oxfam’s finances and its key performance indicators, and we also hold annual ‘Oxfam Live’ events in locations around the UK.

Diversity and disabilityOxfam has a strong commitment to developing the diversity of its staff and volunteers through equal opportunity policies, training, targets and practical action. This includes encouraging applications from disabled people, developing their skills, and taking every reasonable measure to adapt our premises and working conditions to enable disabled people to work or volunteer with Oxfam.

VolunteersMore than 22,000 volunteers work in Oxfam shops, and thousands of others contribute their time to Oxfam in a variety of ways. Most make a regular commitment, ranging from a few hours to a full working week. Some use their professional expertise, while others give their time and energy in work that is not related to their everyday jobs. Some volunteers may be retired or not in paid employment. Oxfam tries to apply the principles of involvement and equality to its many volunteers.

32 STRUCTURE, GOVERNANCE AND MANAGEMENT TRUSTEES’ REPORT

ACCOUNTABILITY, OPEN INFORMATION AND COMPLAINTS POLICIES

Oxfam is committed to being transparent in its work and accountable to its key stakeholders, in particular people living in poverty. An annual update on our Accountability Report 2010 is available on pages 34-35. Information about our Open Information and Complaints Policies are available on our website.

OXFAM IN SCOTLAND

One of the requirements of the Office of the Scottish Charity Regulator is that we report separately on the activities that Oxfam has undertaken in Scotland.

During 2011/12, we campaigned successfully for the creation of a Scottish International Climate Adaptation Fund. We continued to gain the support of the Scottish public and influential people on the proposed Robin Hood Tax, seeking the support of the Scottish Government to add to the clamour of voices supporting this issue in Europe.

We focused on tackling poverty and inequality in Scotland. In particular, this year we have launched the Oxfam Humankind Index, a new measure of prosperity for the people of Scotland that focuses on what people say is important for their own lives, rather than on the single-minded pursuit of wealth that has led to such a far-reaching downturn.

We continue to concentrate on building the capacity of communities, particularly in the west of Scotland, to take charge of assets and resources locally, so that they better serve their needs; so that local communities have a proper stake in economic development and investment; and so that issues of sustainable development have real and lasting resonance for marginalised communities, as well as those in more advantaged positions. A new locally funded media project in Glasgow is focused on improving our partners’ capacity to engage positively with the media and get their voices heard in local and Scottish debates.

Our work on development education, working with Scottish education authorities, the International Development Education Association of Scotland (IDEAS) network and other partners, is focused on improving teachers’ capacity to teach global citizenship under the new Scottish Curriculum for Excellence so that they can pass that confidence and knowledge on to their pupils.

Our fundraising work has included the income from our network of more than 50 shops in Scotland, supported by more than 1,500 dedicated volunteers. Many people in Scotland are very generous and committed givers, and there are many more who give to specific appeals and projects. We also benefit from the generosity of Scottish-based trusts, foundations and companies. The Scottish Government has funded development projects in Malawi, Pakistan and Iraq, as well as providing funding for emergency water supplies in the Gedo region of Somalia during the famine. Indeed, supporters and television viewers raised more than £0.33m for the East Africa Food Crisis Appeal during the televised Legends football match between Celtic and Manchester United at Parkhead in August 2011. We have a growing number of networks of supporters through our community fundraising and additionally we are supported by the newly established Scottish Circle, a group of motivated women who have raised a significant amount of much needed funding for the We Can campaign in Pakistan. We Can engages with and empowers ordinary people to end violence against women and girls.

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Accountability objectives (2010-13)

Progress in 2011/12

Governance We will become an increasingly effective and accountable organisation.

We are currently revising our Complaints Policy and reviewing Trustee engagement with stakeholders. We have made less progress than expected in implementing the Oxfam International programme standards, which reflects the complexity of the international change process.

People and communities We will make demonstrable improvements in our ability to give account to, take account of, and be held to account by, our primary stakeholders.

Improvements in our programme management and information systems have enabled us to become more accountable to people in communities. Following discussions at a senior level, we are developing a clearly prioritised workplan for the coming year. We will also focus further on improving our accountability in our campaigning and advocacy work next year.

A new methodology for measuring levels of accountability with partners and communities, known as Accountability Effectiveness Reviewing, was piloted and adopted. Through such evaluative work, we have learned that while we are strong in participatory approaches and developing relationships, we are less strong when it comes to putting processes in place – primarily to enable transparency and structured feedback and complaints mechanisms.

In our humanitarian capacity-building work we are now routinely capturing knowledge and building skills. Investigations into humanitarian responses have helped us to identify where we are meeting standards and where improvements need to be made.

Women in the communities we work with and women’s rights organisations We will put women’s rights at the heart of everything we do.

Independent reviews of our work on gender show that staff and organisational capacity has improved. We will continue to use innovative impact assessment methodologies. Our recent campaigning work on gender issues has been evaluated and is open to public scrutiny via social media channels.

The Oxfam Minimum Standards on Gender Equality and Women’s Rights are being used in our humanitarian programmes. When designing programmes, we are increasingly focused on ensuring that they are culture- and gender-sensitive, eg. innovative ‘cash-for-work ‘ programmes which enable women to increase their earning power, and promote dignity and self-esteem.

Partners We will make demonstrable progress in consistently putting into practice the values and principles embodied in our Partnership Policy.

Through piloting our Accountability Effectiveness Reviews, we have learned that people like being in partnership with us, but that we need to improve our transparency with our partners and be both clearer and more supportive about the standards and compliance we expect.

Due to extremely demanding responses to the Pakistan floods and drought in the Horn of Africa, we have had to postpone work on researching our partnerships during humanitarian responses, and reviewing our finance and administrative procedures until 2012/13.

SupportersWe will remain committed to ensuring that we communicate with our supporters in a clear and transparent way and seek their feedback.

The new Oxfam website, which offers supporters